This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document prevails.

Financial Results for the Three Months ended May 31, 2021

July 7, 2021

Company name

Aeon Co., Ltd.

Listings

The First Section of Tokyo Stock Exchange

Security code

8267

URL

http://www.aeon.info/en/

Representative

Akio Yoshida, President

Contact

Takeshi Miyazaki

Chief Officer, Finance and Accounting

Telephone

+81 43-212-6042

Scheduled dates:

Submission of statutory quarterly financial report Commencement of dividend payments Supplementary materials to the quarterly results Quarterly earnings results briefing

July 15, 2021

-

Available

Yes (targeted at institutional investors and analysts)

(Amounts rounded down to the nearest million)

1. Consolidated Financial Results for the Three Months ended May 31, 2021

(March 1, 2021 to May 31, 2021)

(1) Operating Results

(Percentage figures represent year-on-year changes)

Operating revenue

Operating profit

Profit (loss)

Ordinary profit

attributable to

owners of parent

Three months ended

million yen

%

million yen

%

million yen

%

million yen

%

2,153,215

3.7

39,183

-

40,365

-

5,001

-

May 31, 2021

Three months ended

2,076,278

(1.9)

(12,552)

-

(16,072)

-

(53,973)

-

May 31, 2020

Note: Comprehensive income:

Three months ended May 31, 2021:

49,513 million yen

(-%)

Three months ended May 31, 2020: -68,522 million yen

(-%)

Earnings

Earnings per share

per share

- fully diluted

Three months ended

yen

yen

5.91

5.90

May 31, 2021

Three months ended

(63.92)

-

May 31, 2020

Note. Even though the Company has dilutive shares, earnings per share - fully diluted for the three months ended May 31, 2021 is not indicated because a net loss per share was recorded for the period.

(2) Financial Position

Total assets

Net assets

Total equity ratio

Net assets per

share

million yen

million yen

%

yen

May 31, 2021

11,492,965

1,781,834

8.5

1,152.91

[excl. Financial Services]

[5,715,790]

[1,404,388]

[15.4]

-

February 28, 2021

11,481,268

1,755,776

8.5

1,147.56

[excl. Financial Services]

[5,749,281]

[1,393,624]

[15.3]

-

Reference: 1. Total equity:

May 31, 2021: 975,122 million yen February 28, 2021: 970,321 million yen

Total equity = Shareholders' equity plus total accumulated other comprehensive income.

2. The figures in square brackets represent consolidated financial position excluding the Financial Services Business.

2. Dividends

Dividend per share

End-first

End-

End-third

Fiscal year-

Record date or

second

Annual total

period

quarter

quarter

quarter

end

Year ended

yen

yen

yen

yen

yen

-

18.00

-

18.00

36.00

February 28, 2021

Year ending

-

February 28, 2022

Year ending

18.00

18.00

36.00

February 28, 2022

-

(forecast)

Note: No changes were made to the latest release of dividend forecasts.

3. Forecast of Consolidated Earnings for the Fiscal Year ending February 28, 2022

(March 1, 2021 to February 28, 2022)

(Percentage figures represent year-on-year changes)

Profit attributable

Earnings

Operating revenue

Operating profit

Ordinary profit

to owners of

per share

parent

million yen

%

million yen

%

million yen

%

million yen

%

yen

200,000

32.8

190,000

36.9

20,000

23.65

Full year

8,620,000

0.2

to

to

to

to

to

-

to

220,000

46.1

210,000

51.3

30,000

35.48

Note: Aeon has not disclosed earnings forecasts for the first six months.

*Notes

  1. Changes affecting the consolidation status of significant subsidiaries during the period: None
  2. Application of special accounting treatment for the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policy, changes in accounting estimates, and retrospective restatement:
    1. Changes in accordance with amendments to accounting standards: None
    2. Changes other than the above 1): None
    3. Changes in accounting estimates: None
    4. Retrospective restatement: None
  4. Number of shares issued (common stock)
    1. Number of shares issued at end of period (treasury stock included):

May 31, 2021:

871,924,572 shares

February 28, 2021:

871,924,572 shares

2) Number of shares held in treasury at end of period:

May 31, 2021:

26,135,770 shares

February 28, 2021:

26,370,771 shares

3) Average number of shares outstanding during the period:

Three months ended May 31, 2021:

845,641,717 shares

Three months ended May 31, 2020:

844,389,330 shares

The Company's stock held by the Employee Stock Ownership Plan Trust (May 31, 2021: 4,161,000

shares, February 28, 2021: 4,388,100 shares) is included in the number of shares held in treasury.

*Quarterly review status

This report is exempt from the quarterly review by certified public accountant or audit firm.

*Appropriate Use of Earnings Forecasts and Other Important Information

(Note on the forward-looking statements)

The above forecasts, which constitute forward-looking statements, are based on information available to the Company as of the date of the release of this document. Actual results may differ materially from the above forecasts due to a range of factors.

For the forecasts herein, please refer to "(3) Consolidated Earnings Forecast" on page 9.

Accompanying Materials

Contents

1. Review of Operating Results and Financial Statements

2

(1)

Analysis of Operating Results

2

(2)

Consolidated Financial Condition

9

(3)

Consolidated Earnings Forecast

9

2. Consolidated Financial Statements and Main Notes

10

(1)

Consolidated Balance Sheet

10

(2)

Consolidated Statement of Income and Consolidated Statement of

13

Comprehensive Income

(3)

Notes on the Consolidated Financial Statements

15

(Notes on the Going-concern Assumption)

15

(Notes on Significant Changes in the Amount of Shareholders' Equity)

15

(Additional Information)

15

(Segment Information)

16

(Material Subsequent Events)

19

1

1. Review of Operating Results and Financial Statements

(1) Analysis of Operating Results

1) Summary of Operating Results

For the first three months of the fiscal year ending February 28, 2022 (March 1, 2021 - May 31, 2021), Aeon Co., Ltd. (hereinafter "Aeon") posted consolidated operating revenue of 2,153,215 million yen (up 3.7%), was a record high exceeding the result for the first three months of the fiscal year ended February 29, 2020, prior to the COVID-19 pandemic. Consolidated operating profit was 39,183 million yen (up 51,735 million yen), ordinary profit was a record high 40,365 million yen (up 56,438 million yen), and profit attributable to owners of parent was 5,001 million yen (up 58,974 million yen). During the first three months of the fiscal year, a state of emergency was declared for certain regions as were strengthened measures to prevent the spread of COVID-19, and stores temporarily closed or shortened operating hours in the areas concerned. However, the areas covered and the specifics of restrictions were more limited than the activity restrictions that were put in place in Japan and overseas in the first three months of the previous fiscal year. The entire Group also worked together as a team to promote thorough infection prevention measures and respond to the "new normal" emerging amid the COVID-19 pandemic. As a result of these efforts, operating results in the GMS (General Merchandise Store) Business, the Financial Services Business, the Shopping Center Development Business, and the Services and Specialty Store Business all recovered significantly. In the Supermarket Business, profit greatly exceeded the level in the first three months of the fiscal year ended February 29, 2020, prior to the impact from COVID-19, as the Group bolstered lineups of products targeting growing dine-in demand amid the COVID-19 pandemic along with other efforts, despite the reactionary decline in demand following the surge in demand for infection prevention-related products and food in the same period of the previous fiscal year. As a result, operating profit recovered to a level second only to the record-high level achieved in the first quarter of the fiscal year ended February 28, 2019, while record-high ordinary profit was also achieved. Profit attributable to owners of parent turned positive for the first time in three years, since the first quarter of the fiscal year ended February 28, 2019, as in addition to the recovery in earnings down to the ordinary profit line, there was a significant decline in losses relating to efforts to respond to COVID-19 recorded in the first quarter of the previous fiscal year.

Common Group Strategy

  • The Group has instituted the Aeon Group Medium-term Management Plan (FY2021- FY2025). With this new medium-term management plan the Group aims to transition to sustainable growth by 2030, viewing the further acceleration, amid the COVID-19 pandemic, of the societal changes that had been already been taking place for some time as a good opportunity for the Group to achieve dramatic growth. These societal changes include the significant changes in customers' behavior, perceptions, and values due to the COVID-19 pandemic, as well as changes in demographics, changes in customers' actions in response to climate change, the penetration of digital technologies into all aspects of life, heightened environmental and health awareness, as well as structural changes in the competitive environment. Under the new medium-term management plan, as a common strategy for the Group, the Group has set forth "Five Reforms" (accelerate and evolve the shift to digital, create unique value with a supply chain-focused outlook, evolve health and wellness, create "AEON Living Zones", and further accelerate the shift to Asian markets), thereby aiming to further accelerate the four "strategic shifts" (Regional, Digital, Asia, plus Investment to support these) implemented up until this point, as well as build a business foundation to realize sustainable growth from 2025 and beyond. In addition to reforming the existing business model and establishing a new growth model, the Group will boost profitability and concentrate investment of management resources thus produced into new

2

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AEON Co. Ltd. published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 02:09:01 UTC.